Project description / objective
To build a better environment for private enterprises to create employment for young women and men - linking up actors in the employment market, promoting self-employment and tackling sectoral development constraints.
Market systems focus
Information technology & business process outsourcing sectors
These are the fastest-growing industries in Bosnia and Herzegovina. In August 2021 the number of employees was 25,149, rising to 27,413 in August 2022, showing a noticeable potential for job creation.
Focus: to instigate systemic changes that contribute to the improvement of labour demand, supply and intermediation problems, ultimately allowing employers to take advantage of opportunities to grow.
Entrepreneurship
Since 2018 freelancing, as an alternative to traditional employment, has been on the rise among young people with 1.5 freelancers in Bosnia and Herzegovina per 1000 capita. MarketMakers recognised the immense knowledge gap young people are confronted with when starting a freelancing career i.e no legal or administrative support or recognised status. Furthermore, the market share of freelancers in the grey economy is presumed to be very high.
Focus: instigating and nurturing systemic changes that contribute to improvements of the business environment for new entrants (sole proprietorships, small business and start-ups) and self-employed individuals (freelancers).
Tourism
Tourism is a growing sector with strong growth prospects. It has been identified as an attractive sector to youth, particularly among women.
Focus:
- infrastructure development to improve air connectivity
- product and service innovation (to diversify the type of tourists - avoiding the displacement of present-day visitors)
- increasing the length of tourist stays.
Food production and processing
The food sector has been identified as the one that has tradition, natural resources, processing and human resources that serve as a basis for creating new business opportunities.
Focus:
- improving the knowledge-base by adopting evidence-based product development
- improvements in organic farming by working towards achieving EU standards by increasing cooperation between farming communities and providing incentives for new policy-level support.
Programme interventions
Information technology & business process outsourcing (BPO) sectors
- Networking and collaboration
Formation of national membership association of IT companies targeting improved education, marketing and policy advocacy, as well as expansion of its functions and membership services. - Destination marketing and investor services
Formation of national membership association of BPO companies with the purpose of developing the country, and the region, as a high-potential investment destination by focusing on: data collection and knowledge generation; industry and member representation; stakeholder capacity-building; and policy advocacy. - Vocational education training / non-formal education development
Increasing relevant training options, involving: assessment of the training providers market; investment in IT/BPO training providers to provide quality training is in line with the needs of the IT and BPO sectors. - Vocational education training (VET) / non-formal education financing
Establishment of market-based solutions (zero-interest student loan product) and policy measures aimed at financial support for enrollment of unemployed young people into highly prospective and employment-oriented non-formal education courses. - Career promotion
Improving IT sector-specific career guidance via an interactive careers portal. This portal is institutionally and commercially sustainable and connected to other career development services in the local market. The aim has been to demystify the sector, and portray it as inclusive and accessible to people of diverse skillsets and backgrounds. - E-commerce development
Establishment of the eComm Association promoting the development of e-commerce. It performs key market functions such as awareness-raising activities, education and direct support to businesses and policy advocacy.
Entrepreneurship
- Freelancer / self-employment promotion
Introduction of new instruments for raising young people's awareness of career prospects in freelancing. Initiation of collaboration between key stakeholders dealing with freelancing to facilitate the provision of quality services to freelancers and advocate for better policy solutions, and create strong foundations for regulatory changes that will create a conducive and just environment. - Sales / marketing / B2B services for MSMEs & start-ups
Supporting partners to tackle common issues faced by online sales and marketing platforms that support MSMEs in business-to-customer or business-to-business. Improvement of the policy framework for sole proprietorship.
Tourism
- Infrastructure development: transportation
Supporting smaller airports to compete to attract regular routes by low-cost carriers. This requires local governments to finance necessary infrastructure upgrades and to make funds available for airline subsidies. - Destination development
Supporting destination management organisations - including clusters, companies, associations, and public tourist boards - to develop new tourism identities for under-developed locations by focusing on their natural and cultural heritage. Facilitating the development of the ‘domestic tourism’ ecosystem during the COVID-19 pandemic to raise awareness of benefits of in-country tourism and enable the environment for effective promotion of offerings. - Destination diversification
Collaborating with public offices to systematically improve the conditions for rural and outdoor tourism through the establishment of expert working groups to advise on public investment and budgetary allocations, as well as adjusting regulations relating to the registration of households for tourism activities. - Product development
Creation of business models for tourism product development (packages and itineraries).
Food production and processing
- Organic production knowledge and quality guarantee
Establishment of a private sector-led solution to improve knowledge around organic production. Initial work on guarantee and control systems that are required to start developing third-party certification in alignment with EU standards. - Processed produce innovations
Encouraging food production and processing companies to access more advanced market research and consumer insights in order to inform new product development and innovations in marketing and retail. - Disaster risk management
Promotion of public and private investment in disaster risk management for economic infrastructure in flood-affected areas of north-east Bosnia and Herzegovina.
Cross-cutting
Market systems development programming
Introduction and normalisation of MSD theory and practice to network Bosnia and Hercegovina regional development agencies working with the programme as co-facilitators.
Gender and social inclusion
- Introduction of diversity and inclusion business certification - through the improvement of internal policies and practices - to encourage private companies to provide a more receptive environment for employment and career advancement of all individuals, regardless of racial, ethnic, religious, gender, or sexual orientation, as well as other identities
- The programme sought to increase the number of childcare places available to working families by approaching large individual companies, or small clusters of medium-sized companies, to start their own kindergartens or day-care facilities for their employees' children.
Notable results (systemic change, poverty impact)
NB There will be an ex-post sustainability review in 2026.
Information technology & business process outsourcing (BPO) sectors
- New jobs/better employment opportunities for approximately 3,600 young people and socially-excluded citizens (44 per cent women)
- VET schemes (2020-2023) increased employability prospects for approximately 3,300 young people, 40 per cent of whom were hired during, or immediately after training completion.
- Innovative market models/practices resulted in at least 139 companies achieving a net increase in revenues.
- Private sector companies are encouraged to invest USD $14.5M in new equipment, capital, expansion of facilities and HR.
Entrepreneurship
After the establishment of the ecosytem for freelancers, 97 young people (46 per cent women) have become self-employed as freelancers or micro-business owners.
Tourism
- Creation of new/better seasonal/regular employment opportunities/retention of jobs: 623 young and socially excluded citizens (43 per cent women)
- Innovative market models/practices or public policies led to a net increase in revenues and/or additional sources of revenues in private sector: 157 companies
- Private sector investment in new equipment and capital, expansion of facilities, and HR: approx. USD $2.9M
Impact on poverty
Bosnia and Herzegovina is an upper middle-income country with a population of 3.3 million. It has 36 per cent youth unemployment and a crude rate of net migration of -8 per 1,000 population.
MarketMakers’ final beneficiaries are young women and men aged between 15 and 30, seeking employment. This includes all populations in this age group, minus those that are already formally registered as employed and where a decent and gainful employment situation can therefore be assumed.
With this broad definition the overall size of the final beneficiary population according to last census in 2013 is 774,210.
MarketMakers contributed to direct, indirect or induced job creation, employment or better employment for approx. 4,900 people (43 per cent women).
[updated in August 2023]
NB The programme ended in 2023 and an ex-post study is planned in 2026 to assess systemic changes.